[Gi Ha-Young's Daily Card Tips] Pay Your Comprehensive Real Estate Tax by the 15th... Don't Miss Card Company Benefits

Deadline for Comprehensive Real Estate Tax Payment on the 15th
Credit Card Companies Offer Interest-Free Installments and Cashback

Is there anyone these days without at least one credit card? In modern society, anyone can have a card if they want. Credit cards have brought unparalleled convenience to daily life. Now, wherever you go, you can easily see people paying with credit cards or smartphones. As demand has increased, cards with various benefits are being released almost daily. In response, Asia Economy delivers diverse stories related to cards, which are inseparable from our consumer life, through the weekly 'Cards in Daily Life' corner, including introductions of new cards, industry behind-the-scenes, and guides for card beginners.

[Image source=Yonhap News]

With the deadline for paying the Comprehensive Real Estate Holding Tax (종합부동산세, Jonghap Budongsanse) approaching on the 15th, credit card companies are offering benefits such as interest-free installments and cashback to customers aiming to reduce their increased tax burden. The Comprehensive Real Estate Holding Tax is levied on those who own real estate such as houses or land above a certain amount. According to the National Tax Service, the number of taxpayers subject to this tax this year has surpassed 1,027,000 for the first time ever, exceeding one million.

Up to 12 Months Interest-Free Installments Offered

Currently, credit card companies offering benefits related to national taxes such as the Comprehensive Real Estate Holding Tax include Samsung, KB Kookmin, Hyundai, and Woori Card. Interest-free installments are a representative benefit. Woori Card offers up to 12 months interest-free installments and 24 months partial interest-free installments until the end of this month. During the same period, Samsung Card provides 2 to 6 months interest-free installments and partially interest-exempt 10 and 12 months "diet" installments for customers who pay national or local taxes of 50,000 KRW or more. KB Kookmin Card also offers 2 to 7 months interest-free installments and 10 to 12 months partial interest-free installments.

Hyundai Card offers 2 to 12 months interest-free installments and up to 24 months partial interest-free installments for payments of 50,000 KRW or more on all taxes including the Comprehensive Real Estate Holding Tax and automobile tax until the 15th of this month. Additionally, if taxes are paid using Hyundai Card's 'M series card' through tax payment websites such as the National Tax Service's Hometax or Wetax, M Points can be used like cash. However, 1 KRW equals 1.5 M Points.

Up to 100,000 KRW Discount... Coffee Coupons Also Provided

Besides interest-free installments, there are also payment day discounts and cashback events. Samsung Card offers payment day discounts based on the payment amount when paying national taxes with Samsung Card via the 'National Tax Benefits' link on the homepage or application (app) link page until the end of this month. The payment day discounts are ▲10,000 KRW for payments between 1 million KRW and less than 3 million KRW ▲30,000 KRW for payments between 3 million KRW and less than 10 million KRW ▲100,000 KRW for payments of 10 million KRW or more. Benefits are provided up to three times during the period after clicking the benefits link, and the discount amount is deducted from the card payment amount. Also, if national or local taxes of 300,000 KRW or more are paid in a lump sum with Samsung Card after linking 'Tax Payment Benefits' on the link page, two Starbucks coupons are provided.

KB Kookmin Card offers up to 40,000 KRW cashback for combined national tax categories such as Comprehensive Real Estate Holding Tax and inheritance tax to members who apply by the 15th. Depending on the amount used, cashback is ▲8,000 KRW for payments between 1 million KRW and less than 2.5 million KRW ▲20,000 KRW for payments between 2.5 million KRW and less than 5 million KRW ▲40,000 KRW for payments of 5 million KRW or more. Additionally, one Starbucks mobile coupon is given for payments of 5 million KRW or more.

Woori Card also runs a cashback event for credit and check card customers who pay 1 million KRW or more in national taxes such as Comprehensive Real Estate Holding Tax, income tax, and inheritance tax and apply for the event by the 15th. According to the total national tax payment amount, benefits include ▲Starbucks coupon for 1 million KRW or more ▲20,000 KRW cashback for 2.5 million KRW or more ▲40,000 KRW cashback for 5 million KRW or more.

Comprehensive Real Estate Holding Tax Card Payment Fees... Credit 0.8%, Check 0.5%

National taxes can be paid by card according to Article 46 of the Framework Act on National Taxes, but unlike local taxes, a payment agency fee applies. The fee is 0.5% for check cards and 0.8% for credit cards. Therefore, before deciding to pay by card, it is necessary to consider whether the cashback and prize benefits provided by the card company exceed the payment agency fee. For example, if you decide to pay 1 million KRW of Comprehensive Real Estate Holding Tax by credit card, the benefits must exceed the payment agency fee of 8,000 KRW (1 million KRW * 0.8%) to reduce the financial burden. However, if the amount to be paid is large, interest-free installments and other benefits are useful, so it is best to make a decision considering your overall situation.